INPUT Expects State & Local Education IT Spending to Recover and Reach $10 Billion by FY10

INPUT Expects State & Local Education IT Spending to Recover and Reach $10 Billion by FY10

Funding Priorities Anticipated to Shift From Healthcare to Education With New Presidential Administration

RESTON, Va., Sept. 13 /PRNewswire/ -- Spending on information technology (IT) in the state & local education market shows little growth over the next two years, but will recover by fiscal year 2008 (FY08) and ultimately grow 45 percent to reach $10 billion by FY10, according to a report released today by INPUT, the authority on government business. A new presidential administration will likely have the support to finally curtail runaway healthcare expenses and allow increased budget allocations for neglected areas such as education.

Due to budgetary constraints, finding funding for information technology initiatives is currently the primary concern for K-12 and public higher education officials. "Right now education IT initiatives play second fiddle to healthcare and public safety programs," said James Krouse, manager, state & local market analysis. "Public pressure during presidential elections will remain fixed on education initiatives and will likely cause a new presidential administration to shift the focus back to education programs following unsuccessful efforts of the Bush Administration to reduce healthcare costs."

Funding for public higher education institutions is constricted in state appropriations and continues to see significant budget cuts. Additional financial concerns within the public higher education market stem from increased demand for services and escalating costs. In the near-term, universities will rely heavily on raising capital through increased tuition and fees to support programs to manage their networks more efficiently and increase system security.

Federal grant allocations for K-12 education continue to more successfully weather the storm of budgetary spending cuts put forth by the Bush Administration. "The K-12 market has faired better than higher education over the past five years," continued Krouse. "K-12 officials sustain a stronghold in the Congressional Appropriations committees and have been able to restore funding for Administration education programs that were originally cut. Officials will be continually pressed to balance the growing importance of federal mandates and adequate grant funding."

"Technology vendors working within the state & local education market will need to remain patient for the next few years," added Krouse. "Controlled spending and inadequate budgets will give way to more significant spending by FY08. Additionally, we will see more noteworthy grant funding earmarked to support the ever- increasing federal mandates within the K-12 education market."

INPUT's State & Local Education MarketView is available to INPUT members subscribing to State & Local Market Analysis. For more information on becoming a member, visit slma.input.com or call 703-707-3500.

About INPUT

INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,000 members, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information about INPUT, visit http://www.input.com/ or call 703-707-3500.

Proper use of name is INPUT.

CONTACT: Dayna Tenorio of INPUT, +1-703-707-3646, or dtenorio@input.com

Source: INPUT

CONTACT: Dayna Tenorio of INPUT, +1-703-707-3646, or dtenorio@input.com

Web site: http://www.input.com/

NOTE TO EDITORS: For access to the report or an interview with the report author, please contact Dayna Tenorio at Hdtenorio@input.com or 703-707-3646

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Profile: education